Cincinnati/Northern Kentucky International Airport has lost more flights and more seats than any other major U.S. airport since 2005 – even as already-high fares have climbed among the fastest.

That finding from a new USA Today analysis of service at the nation’s 100 largest airports underscores concerns that have beset this region for years: that a downsized CVG hurts efforts to win new businesses and jobs and retain what’s already here.

“I had a guy call me from a company in Germany a couple years ago looking for a North American headquarters,” said Jim McGraw, president and CEO of Cincinnati-based KMK Consulting. “Once he found out that we lost our direct flight to Frankfurt, he said, ‘OK, that’s all I needed to know,’ and our call ended in 20 seconds.”

USA Today analyzed the changes in flights, seats and fares at the nation’s largest airports from the first quarter of 2005 to the first quarter of 2013. The findings for CVG mirror trends nationally, but to a much greater degree. Throughout the nation, the airline industry has consolidated through mergers at the same time that rising fuel costs have resulted in fewer, more packed planes.

The analysis found that Cincinnati/Northern Kentucky lost 44,480 flights – 78 percent. That compared to the national average of 19 percent. The region’s main airport lost 3.5 million seats – down 80 percent, compared to a 15 percent national decline.

At the same time, however, average fares at CVG increased to $519 – up 26 percent compared to just a 4 percent national increase.

Locally, many blame the years-long downsizing by the airport’s dominant carrier, Delta Air Lines, which once operated its second-largest hub at CVG. Despite significant reductions since 2005, low-cost carriers have been reluctant to try to compete in Cincinnati because of Delta’s reputation of bullying competition.

Still, other similar-sized cities in which a dominant carrier has significantly downsized or completely folded its hub have not been so negatively affected. Pittsburgh, for example, lost 55 percent of its flights, mostly because US Airways ended its hub operations there. Fares there have declined by 9 percent, though, mostly because low-cost carriers Southwest Airlines and JetBlue Airways entered the market when US Airways was downsizing.

“Cincinnati’s progression is much-slower developing because of Delta’s history of pushing low-cost carriers out,” local aviation expert Jay Ratliff said. “We created our own problem with a history of not supporting low-cost carriers.”

Other findings related to Cincinnati/Northern Kentucky in the USA Today analysis:

• The number of airlines operating from CVG dropped from eight to four in the eight-year period.

• Nonstop destinations dropped from 133 to 46.

• Delta accounted for 99 percent of the lost flights.

End of nonstops to Europe clips our competitive wings

The economic impact of the cuts at CVG has been significant. Flight reductions caused the loss of 33,000 jobs and almost $1 billion in annual economic activity since 2005. That’s according to an Enquirer analysis earlier this year, based on studies by the University of Cincinnati and Northern Kentucky University.

In 2011, Chiquita officials expressed discontent with the decline in flights at CVG. The company relocated its headquarters to Charlotte, taking more than 300 jobs.

McGraw, chief executive of the economic development firm KMK Consulting, said he’s not directly heard of any other company’s deciding not to come to Cincinnati because of the cuts at CVG. He said he thinks the cuts have hurt in recruiting companies, though.

“We used to always measure ourselves against Charlotte, Atlanta and Dallas, because we had a lot of flights that allowed us to do that,” said McGraw, who consults nationwide. “Where (the cuts) could be a big challenge is competing for certain types of office users, particularly companies coming from Europe or wanting to do business in Europe.”

McGraw added: “We used to win a lot of those (against Charlotte). But the airport change made it a challenge to compete with Charlotte because you can fly right over to Europe from there.”

Delta’s cuts at CVG have included eliminating four nonstop flights to Europe. Only one remains – a daily flight to Paris.

Frontier's success good sign: 'Light at end of this tunnel'

Airport officials and some airline experts are optimistic that CVG is starting to reverse the years-long trend of flight reductions and high air fares. Delta’s cuts have leveled off this year, and the airline’s chief executive, Richard Anderson, said last summer that flights now are at the right level.

The USA Today data also does not reflect the arrival of Frontier Airlines in May, CVG’s first low-cost carrier since the late 1990s. Frontier’s daily nonstop flight to Denver continues to be 90 percent full, and airport officials said a second flight may be added. Frontier has announced it plans to launch flights to Trenton, N.J., near Philadelphia in February.

Discount carrier Allegiant Air also plans to launch Cincinnati flights to two Florida cities in February.

Airport CEO Candace McGraw said Frontier’s success has caught the attention of other carriers. She’s noticed a difference in the tone of her discussions with airlines after Frontier’s arrival. “They’re very positive discussions,” said McGraw, who is not related to Jim McGraw. “There is definitely light at the end of this tunnel.”

Delta hasn’t tried to bottom-out its fares to push Frontier out of the market, an indication Delta isn’t willing any more to spend at all costs to protect its turf here.

“It took Frontier coming in to test the waters, which many people thought was ridiculous and stupid,” Ratliff said. “Now you’re seeing others coming in, and I wouldn’t be surprised if JetBlue announces it’s coming in the next several months. The airlines play follow the leader.”

During the second quarter, CVG’s fares were down or remained consistent with 52 of 99 cities compared to the same period last year, according to airport data. Fares to Denver were down 17 percent, mostly because of Frontier.

Still, CVG faces major challenges. The airport’s lease agreement limits it from offering incentive packages to prospective airlines. And a big chip was taken off the table when Southwest launched in Dayton this year.

“There aren’t a lot of options out there,” aviation expert Michael Boyd said. “Even if you get JetBlue, they’ll fly to New York or Boston, and that’s not going to change fares for the entire airport.”

Five regional airports within 100 miles also continue to poach fliers. CVG has targeted adding flights to eight cities to which Greater Cincinnati travelers are choosing to fly out of Dayton and Louisville. Southwest countered this fall by aggressively advertising its Dayton flights on interstate billboards in Cincinnati.

“They are recognizing that they’ve lost a number of passengers to us, and they are trying to recapture those passengers,” McGraw said.